The region’s 21 largest insurance brokers saw a 9.7% increase in local revenue to $1.2 billion.
Six firms on this year’s list reported revenue gains at their Orange County office. Orion Risk Management, ranked No. 13, posted a 25% rise to $30 million, while the largest broker in the group, Alliant Insurance Services Inc., experienced growth of 26% to $377.8 million.
Alliant’s Chief Executive Greg Zimmer said that to adapt to the current needs of modern clients, brokers need to scale and invest in areas like technology. He added that the Irvine-based company has worked to build an attractive platform that allows employees to successfully serve their clientele and drive organic growth with mergers and acquisitions “complementing” that activity.
Zimmer noted that making these kinds of investments has driven the industry in a different direction over the last 20 years.
“Small brokers being able to effectively compete with the big brokers is becoming more and more difficult,” Zimmer told the Business Journal.
OneDigital in Irvine attributed its 11% growth, reaching $47.1 million, to three acquisitions in 2023 and several new hires, moving the firm up one spot to the No. 9 position.
The number of local Property and Casualty (P&C) brokers fell 1.4% to 410 with Benefits producers growing by 3% to 482 and support staff in OC up by 3.7% to 1,885, according to Business Journal research as of August.
Battling Costs
Some brokers are working to match their clients where they are in the current economic state.
At Gallagher, businesses are struggling with the impact of inflation on profit margins, according to Area President Mike Bialik. He said the company was focused on providing solutions to help “battle” and “mitigate large cost increases”.
The Irvine firm has focused on scale and talent as well, ensuring its ability to work with companies of all sizes.
“We’ve made large investments in technology, which has made us stronger consultants. We’re using data to question traditional thinking, and it has increased our client retention, our net promoter score (NPS), and it has improved our sales close ratio,” he added.
Gallagher, ranked No. 4, recorded revenue growth of 19% to $77.1 million in 2023.
“I’m excited to see how we’ll continue to adapt in the future to exceed our client’s expectations.”
Optimal Outcomes
No. 5 Marsh & McLennan Insurance Agency LLC grew 13% in revenue from its OC offices.
“The Orange County MMA office provides a comprehensive range of services in both large and small group sectors of healthcare benefits,” Managing Director Stacy Hubbard said.
The Aliso Viejo office provides consultation services to growing companies in construction, manufacturing, tech and more.
“Our primary focus is on strategic consulting, ensuring optimal outcomes for our clients,” she added.
Marsh & McLennan increased its OC headcount from 178 a year ago to 217 as of August.
Dropping off the list was Aliso Viejo’s Brakke-Schafnitz Insurance Brokers Inc., which was acquired by Acrisure LLC of Grand Rapids, Mich. 10 years ago and recently transitioned into the Acrisure name.
